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1 - 8 of 8 (0.40 seconds)Section 80IB in The Income Tax Act, 1961 [Entire Act]
Section 28 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax,West ... vs Calcutta Agency Ltd on 21 December, 1950
22,60,596/- made by the Assessing Officer on account of freight
charges expenses without giving any reason at his own and simply
relying on his earlier years appellate order and even though the
assessee had failed to discharge its onus that the expenditure was
incurred wholly and exclusively for the purpose of business and is
in contrary to the decision of the Hon'ble Supreme Court in the
case of CIT(A) vs Calcutta Agency Ltd. (1951) 19 ITR 191 (SC)
wherein it was held that if the assessee failed to establish the facts
necessary to support his claim for deduction u/s 37(1), the claim
for deduction of expenditure is not admissible."
R.A. Varma, Assistant Commissioner Of ... vs Laxmi Induction And Ors. on 19 December, 1994
19. Ground No. 12 of the appeal is with respect to the direction of the Ld. CIT(A), 2 not
to reduce the profit eligible for deduction under section 80 IA with respect to service
charges, unclaimed balances written back, miscellaneous income and scrape sales
by 90% while working out deduction under section 80 HHC etc. During the course of
assessment proceedings it was found that assessee's claim deduction under
section 80 HHC of the income tax act of Rs. 6 48776/- which was restricted by the
Ld. assessing officer to Rs. 1 64054/-. The main contention of reduction was the
excise duty element and sales tax element which are been included in total
turnover. The Ld. CIT(A) appeal has held that the above controversy has been set
at rest with the decision of the Hon'ble Supreme Court in case of CIT(A) versus
Laxmi machine Works 290 ITR 667. The above aspect of computation of deduction
has not been challenged by the revenue. Now only issue remains is whether the
income of service charge, unclaimed balances written back, miscellaneous income
and scrape sales amounting to Rs. 6 379059/- are required to be reduced by 90%
while working out the deduction under section 80 HHC of the act. The claim of the
assessee is that these receipts are not in the nature of receipts referred to under
section 28 of the act or not in the nature of brokerage commission interest and etc
and therefore same cannot be excluded. The Ld. CIT(A) A, has deleted the above
reduction in the deduction claimed by the assessee. Relying on the decision of the
Central board of direct taxes as well as letter of various decisions CIT(A)ed before
him. The Ld. CIT(A) A was further convinced by circular 621 wherein the provisions
of finance act (No. 2) has clearly clarified that only those amounts are to be
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extruded which do not have the element of turnover in them suggests interest
commission etc. The Ld. CIT(A) appeal has held that the services are has received
by the assessee are in the nature of its usual business turnover and there is no
justification for excluding the same for the purpose of working out deduction. He
further held so with respect to other receipts such as miscellaneous income and
scrape sales. Hon'ble Delhi High Court has also held in 336, ITR 444 the industrial
undertaking set up by the assessee was for the purpose of manufacture of steel
forging, transmission gears and part and accessories of motor vehicles and the
scrap of these items was stated to be a by product of manufacturing process. The
activity of forging was "manufacturing" within the ambit of section 80-IB . It was
immaterial that the assessee was doing the job of forging also for customers and
was charging them on job work basis or on the basis of labour charges. It would still
be qualified as carrying on eligible business under section 80-IB. The activities of
the assessee were in giving heat treatment for which it had earned labour charges
and job work charges. It could thus be said that the assessee had done a process
on the raw material which was nothing but a part and parcel of the manufacturing
process of the industrial undertaking. These receipts could not be said to be
independent income of the manufacturing activities of the undertaking of the
assessee and thus could not be excluded from the profits and gains derived from
the industrial undertaking for the purpose of computing deduction under section 80-
IB . These were gains derived from the industrial undertaking and so entitled for the
purpose of computing deduction under section 80-IB . There could not be any two
opinions that manufacturing activity of the type of material being undertaken by the
assessee would also generate scrap in the process of manufacturing. The receipts
from sale of scrap being part and parcel of the activity and being proximate thereto
would also be within the ambit of gains derived from the industrial undertaking for
the purpose of computing deduction under section 80-IB . In view of this we dismiss
ground No. 12 of the appeal of the revenue.
Section 80HHC in The Income Tax Act, 1961 [Entire Act]
Section 80IA in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income Tax-1 Ludhiana vs M/S Abhishek Industries Ltd Ludhiana on 27 January, 2015
9. On the facts and in the circumstances of the case, the Ld.CIT(A) has erred on facts
and in law in deleting the addition of Rs. 1,12,000/- made on account of interest free
loan given to the Director of the company in contravention to the decision of the
Hon'ble Punjab & Haryana High Court in the case of CIT(A), Ludhiana Vs. Abhishek
Industries (286 ITR 1)."
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